Axis Bank on Friday reported an 18 per cent rise in net profit in the October-December quarter, on the back of higher other income and net interest income.

The country’s third largest private sector bank posted net profit of Rs 1,900 crore for the third quarter of 2014-15, against Rs 1,604.1 crore in the corresponding quarter of the past financial year.

Private sector lender Axis Bank reported 18.4 per cent rise in its net profit to Rs. 1,899.76 crore for the third quarter ended December FY15.

The third largest private sector bank’s net profit in the corresponding October-December quarter of FY14 stood at Rs. 1,604.11 crore.

Axis Bank's scrip is the top performer in 2014 in the Nify 50 universe and has grown almost 100% in the calendar year.

Notably, the stock was under pressure in the beginning of the year due to asset quality concerns given that its exposure to the troubled infrastructure sector and highly leveraged corporates was on the higher side when compared to other private banks. This, alongwith high interest rates and slowing economy (both corporate capex and on consumption side) weighed on the stock, which fell 4.2% in 2013.

The country’s largest lender, State of Bank of India (SBI), said it was ruling out a cut in lending rates till credit demand picked up, to compensate for loss in interest income.

A cut in lending rate immediately impacts the income. When volumes are thin (of the credit pipeline), it is difficult to reduce these rates, SBI Chairman Arundhati Bhattacharya told reporters on Tuesday.

Fixed interest rate home loans have staged a comeback in the market, with Axis Bank — the third largest private sector lender in the country — being the latest to roll out one such product. The bank has introduced a fixed home loan product for the tenure of 20 years, priced at 10.4 per cent.

However, this Lifetime Fixed interest home loan is available only for loans up to Rs 50 lakh for property up to Rs 65 lakh in metros and for borrowing up to Rs 40 lakh for property of Rs 50 lakh in other locations.

Axis Bank, India’s third largest private-sector lender has gained over 1% at Rs 505 after the bank on Tuesday said that it has raised Rs 5,705 crore by selling infrastructure bonds. The 10-year senior unsecured redeemable non-convertible debentures (NCDs) were priced at 8.85 per cent a year, payable annually.

The NCDs have been rated AAA by CRISIL and ICRA. The bonds will be allotted to eligible investors on Friday.

Benchmark indices may open marginally higher tracking the gains in their select Asian peers which have gained on expectations of positive US nonfarm payrolls report due later today.

At 8:20AM, the early indicator SGX Nifty was flat at 8,605.

Private sector commercial bank Axis Bank is expecting its credit card business doubling in terms of volume during the next three years. It is expecting the credit card spend to grow two to three times from the current Rs 1,000 crore, by the time, said Jairam Sridharan, president - retail lending and payments, Axis Bank.

Speaking to reporters in Chennai about the Bank's retail lending portfolio, he said, "The credit card business is expected to grow at a healthy level in the future. At present we have 1.5 million credit cards and we are expecting this to double in next three years."

Benchmark share indices which had pared early gains rebounded after the first hour of trade, amid encouraging manufacturing growth, led by FMCG majors and select private banks.

At 10:40AM, the 30-share Sensex was up 64 points at 28,758 and the 50-share Nifty was up 20 points at 8,609.

Axis Bank-country’s third largest private sector bank-has launched a self-service terminal that enables customers to deposit as well as withdraw cash from the same machine.

Customers can initiate a deposit transaction through these terminals even without using a debit card. If the customers PAN details are available with the bank then there is no restriction on the amount of cash being deposited, the bank said.

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